UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
OR
| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to __________.
Commission File Number: 1-10768
MEDIWARE INFORMATION SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
New York 11-2209324
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1121 Old Walt Whitman Road
Melville, New York 11747-3005
(Address of principal executive offices) (Zip Code)
(631) 423-7800
(Registrant's telephone number including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
As of May 5, 2000, there were 7,004,432 shares of Common Stock, $0.10 par value,
of the registrant outstanding.
<PAGE>
MEDIWARE INFORMATIONS SYSTEMS, INC.
INDEX Page
PART I Financial Information
ITEM 1. Financial Statements
Consolidated Balance Sheets as of March 31, 2000
(Unaudited) and June 30, 1999 (Audited)............................. 3
Consolidated Statements of Operations
for the three and nine months ended March 31, 2000 and
1999 (Unaudited) .....................................................4
Consolidated Statements of Cash Flows
for the nine months ended March 31, 2000 and
1999 (Unaudited)......................................................5
Notes to Financial Statements.........................................6
Independent Auditors' Report..........................................7
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................................8
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk...........10
PART II Other Information
ITEM 6. Exhibits and Reports on Form 8-K.....................................10
Signature Page................................................................11
Exhibit 11
Schedule of Computation of Net Income Loss) Per Share........................12
Exhibit 15
Letter of awareness from Richard A. Eisner & Company, LLP
dated May 12, 2000 concerning unaudited interim fnancial information..........13
Exhibit 27
Financial Data Schedule.......................................................14
2
<PAGE>
MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except shares)
<TABLE>
<CAPTION>
March 31, June 30,
2000 1999
-------- --------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 3,810 $ 3,556
Accounts receivable (net of allowance of $1,031 at
March 31, 2000 and $907 at June 30, 1999) 6,812 8,361
Inventories 189 403
Prepaid expenses and other current assets 605 568
Deferred tax asset 721 448
-------- --------
Total current assets 12,137 13,336
-------- --------
Fixed assets, net 2,042 1,883
Capitalized software costs, net 6,520 4,289
Goodwill, net 5,946 6,266
Purchased technology, net 1,888 448
Other long-term assets 151 126
-------- --------
Total Assets $ 28,684 $ 26,348
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes payable and current portion of long-term debt $ 1,159 $ 1,137
Accounts payable 1,485 1,115
Advances from customers 6,019 5,347
Accrued expenses and other current liabilities 3,435 2,554
-------- --------
Total current liabilities 12,098 10,153
Other long-term liabilities 74 279
-------- --------
Total liabilities 12,172 10,432
-------- --------
Stockholders' Equity
Preferred stock, $.01 par value; authorized 10,000,000
shares; none issued or outstanding -- --
Common stock, $.10 par value; authorized 12,000,000
shares; issued and outstanding; 7,004,000 shares at
March 31, 2000 and 6,146,000 at June 30, 1999 701 615
Additional paid-in capital 22,363 21,421
Accumulated deficit (6,517) (6,107)
Unearned compensation - (11)
Accumulated other comprehensive (loss) (35) (2)
Total stockholders' equity 16,512 15,916
-------- --------
Total Liabilities and Stockholders' Equity $ 28,684 $ 26,348
======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------ -------------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues
System sales $ 1,913 $ 3,285 $ 6,297 $ 9,246
Services 4,376 4,015 14,050 11,117
-------- -------- -------- --------
Total revenues 6,289 7,300 20,347 20,363
-------- -------- -------- --------
Cost and Expenses
Cost of systems 719 1,080 2,275 2,897
Cost of services 2,034 1,030 5,133 3,023
Purchased research and development -- -- -- 4,553
Software development costs 1,428 859 3,539 2,380
Selling, general and administrative 4,042 3,174 10,121 8,837
-------- -------- -------- --------
Total costs and expenses 8,223 6,143 21,068 21,690
-------- -------- -------- --------
Operating income (loss) (1,934) 1,157 (721) (1,327)
Interest and other income 21 20 80 90
Interest (expense) (12) (37) (42) (143)
-------- -------- -------- --------
Earnings (loss) before provision for income taxes (1,925) 1,140 (683) (1,380)
Benefit (provision)for income taxes 721 (172) 273 (477)
-------- -------- -------- --------
Net Earnings (Loss) (1,204) 968 (410) (1,857)
-------- -------- -------- --------
Other Comprehensive Income, net of tax
Foreign currency translation adjustment (7) (16) (33) --
-------- -------- -------- --------
Comprehensive Income (Loss) $ (1,211) $ 952 $ (443) $ (1,857)
======== ======== ======== ========
Earnings (Loss) Per Common Share
Basic $ (0.17) $ 0.16 $ (0.06) $ (0.32)
======== ======== ======== ========
Diluted $ (0.17) $ 0.14 $ (0.06) $ (0.32)
======== ======== ======== ========
Weighted Average Common Shares Outstanding
Basic 7,004 6,049 6,505 5,840
======== ======== ======== ========
Diluted 7,004 7,120 6,505 5,840
======== ======== ======== ========
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
<TABLE>
<CAPTION>
Nine Months Ended March 31,
-------------------------
2000 1999
------- -------
<S> <C> <C>
Cash Flows From Operating Activities
Net earnings (loss) $ (410) $(1,857)
Adjustments to reconcile net earnings (loss) to
net cash provided by operating activities:
Depreciation and amortization 1,696 1,339
Write-off of acquired research and development -- 4,553
Deferred tax assets (273) --
Shares issued to directors 75 50
Compensatory stock options 11 30
Provision for doubtful accounts 447 15
Changes in operating assets and liabilities:
Accounts receivable 1,102 (1,067)
Inventories 214 (107)
Prepaid and other (62) (431)
Accounts payable, accrued expenses and
customer advances 1,890 1,769
------- -------
Net cash provided by operating activities 4,690 4,294
------- -------
Cash Flows From Investing Activities
Acquisition of fixed assets (542) (969)
Capitalized software costs (3,123) (1,437)
Acquisition of technology (1,541) -
Acquisition of Informedics - 653
------- -------
Net cash used in investing activities (5,206) (1,753)
------- -------
Cash Flows From Financing Activities
Principal payments of long-term debt and
capitalized leases (150) (3,750)
Proceeds from exercise of options and warrants 953 202
------- -------
Net cash provided by (used in) financing activities 803 (3,548)
------- -------
Foreign currency translation adjustments (33) (16)
------- -------
Net Increase (Decrease) in Cash and Cash Equivalents 254 (1,023)
Cash and cash equivalents at beginning of period 3,556 4,681
------- -------
Cash and cash equivalents at end of period $ 3,810 $ 3,658
======= =======
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Interest $ 111 $ 143
Income Taxes $ 127 $ 71
Non-cash investing activities:
Accounts payable related to purchase of technology $ 375 $ -
</TABLE>
See Notes to Consolidated Financial Statements.
5
<PAGE>
MEDIWARE INFORMATION SYSTEMS, INC., AND SUBSIDIARIES
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited, consolidated financial
statements contain all adjustments necessary to present fairly the financial
position of the Company and its results of operations and cash flows for the
interim periods presented. These financial statements should be read in
conjunction with the Company's audited financial statements for the year ended
June 30, 1999 included in the Company's annual report filed on Form 10-KSB.
The results of operations for the three and nine months ended March 31, 2000 are
not necessarily indicative of the results to be expected for the entire fiscal
year.
2. EARNINGS (LOSS) PER SHARE
Basic earnings per share have been computed using the weighted average number of
shares of common stock of the Company outstanding for each period presented. For
the three months ended March 31, 1999, the dilutive effect of stock options and
other common stock equivalents is included in the calculation of diluted
earnings per share using the treasury stock method. For the three months and
nine months ended March 31, 2000 and the three months ended March 31, 1999,
common stock equivalents are not included in the calculation of loss per share
as the effect would be anti-dilutive.
3. ACQUISITION OF SOFTWARE LICENSE
In November 1999, the Company acquired the rights to LifeTrak (TM), a
comprehensive donor blood center software package from Carter BloodCare. The
purchase price aggregated $1,500,000, including $750,000 paid upon delivery of
the product, and installments of $375,000 due upon clearance by the FDA of the
Donor system and on June 30, 2000. The Company also entered into a license
agreement granting Carter BloodCare the right to continue use of the software in
their blood center and laboratory facilities, and providing for royalty payments
to Carter BloodCare by the Company in an amount equivalent to 5% of LifeTrak
(TM) software sales for a five-year term. Software was capitalized as purchased
technology which is being amortized over its expected useful life of five years.
4. RELATED PARTY TRANSACTIONS
During the nine months ended March 31, 2000, the Chairman of the Company
exercised a total of 674,695 stock warrants and 15,000 stock options for a total
exercise price of $513,369, increasing his ownership to 14.9% of the outstanding
stock of the Company, as computed under Rule 13d-3 of the Securities and
Exchange Commission. The warrants exercised were issued in connection with the
fiscal 1995 bridge financing at an exercise price of $272,500 for 545,000 shares
and $162,119 for 129,695 shares. The stock options were exercised at an
aggregate price of $78,750 and were granted as compensation for service as the
Chairman of the Board.
6
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To The Board of Directors and Stockholders of
Mediware Information Systems, Inc.
We have reviewed the accompanying consolidated balance sheet of Mediware
Information Systems, Inc. and subsidiaries as of March 31, 2000 and the related
consolidated statements of income, stockholders' equity and cash flows for the
three-month and nine-month periods then ended. These financial statements are
the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying March 31, 2000 financial statements for them to be
in conformity with generally accepted accounting principles.
We previously audited, in accordance with generally accepted auditing standards,
the consolidated balance sheet as of June 30, 1999, and the related consolidated
statements of income, stockholders' equity and cash flows for the year then
ended (not presented herein), and in our report dated September 24, 1999, we
expressed an unqualified opinion on those consolidated financial statements. In
our opinion, the information set forth in the accompanying consolidated balance
sheet as of June 30, 1999, is fairly stated in all material respects in relation
to the consolidated balance sheet from which it has been derived.
Richard A. Eisner & Company, LLP
May 9, 2000
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Forward-Looking Statements
Certain statements made in or incorporated into this 10-Q constitute
"forward-looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995, as the same may be amended from time to time (the
"Act") and in releases made by the SEC from time to time. Such forward-looking
statements are not based on historical facts and involve known and unknown
risks, uncertainties and other factors which may cause the actual results of the
Company to be materially different from any future results expressed or implied
by such forward-looking statements. These risks and uncertainties include: (i)
fluctuations in quarterly operating results, (ii) reliance on third party
software, (iii) dependence on third party marketing relationships, (iv) changes
in the healthcare industry, (v) significant competition and the markets
acceptance of the Company's products, (vi) the Company's ability to manage its
rapid growth, (vii) the effects of government regulations on the Company, (viii)
product related liabilities, (ix) delays in product development or installation
(xi) risks associated with system errors and warranties. Amplification of such
risks may be found in the "Management's Discussion and Analysis of Financial
Condition and Results of Operations" section of the Company's Annual Report on
Form 10-KSB for the fiscal year ended June 30, 1999. The Company does not intend
to update publicly any forward-looking statements.
Results of Operations
Total Company revenues decreased by 13.8% or $1,011,000 for the three months
ended March 31, 2000. Revenues for the nine months ended March 31, 2000 compared
to the same period one year ago decreased by $16,000. For the quarter and fiscal
year to date revenue, increases in our other divisions were primarily offset by
flat or declining revenues in the Pharmacy division.
System sales decreased 41.8% or $1,372,000 and 31.9% or $2,949,000 for the
quarter and year to date periods compared to fiscal 1999. A decrease in system
sales occurred in all divisions and related primarily to a decrease in new
business in the nine months ended March 31, 2000. The Company believes the
system sales were negatively impacted by clients not initiating or delaying
purchasing new systems due to their focus on preparing for Year 2000, and
additionally, by delays experienced in the delivery of new product releases.
Management believes that interest in new system purchases has increased as a
result of the passing of Y2K; however, there can be no assurances that system
sales will rebound to levels experienced prior to the publicly reported
industry-wide Y2K slowdown.
Service revenues which includes recurring support, implementation and training
services increased 9.0% or $361,000 for the quarter ended March 31, 2000 and
26.4% or $2,933,000 for the nine months ended compared to the same periods in
fiscal year 1999. The increase in service revenues related to implementation
services performed in all divisions primarily driven by Year 2000 preparations.
Additionally, recurring support revenue growth was approximately 6.0% and 13.0%
for the quarter and nine months ended March 31, 2000.
Cost of systems includes the cost of computer hardware and sublicensed software
purchased from computer and software manufacturers by the Company as part of its
complete system offering. Cost of systems decreased 33.4% or $361,000 and 21.5%
or $622,000 for the quarter and nine months ended March 31, 2000 respectively.
This decrease in cost of systems was due to the decrease in system sales. The
gross margin on system sales for the quarter decreased 4.7 points to 62.4% from
67.1%. The quarter results were consistent with a 4.8 point decrease to 63.9%
from 68.7% for the nine months ended March 31, 2000. The decrease in margin
primarily related to a
8
<PAGE>
decrease in licensed software sales and a higher mix of low margin product, such
as hardware and third party software, sold in preparation for Year 2000.
Cost of services includes the salaries of client service personnel and cost of
client maintenance, along with the direct client service department expenses.
Cost of services increased 97.5% or $1,004,000 and 69.8% or $2,110,000 for the
quarter and nine months ended March 31, 2000, respectively. The gross margin on
service revenue decreased 20.8 points to 53.5% from 74.3%, and 4.8 points to
63.5% from 68.7% for the quarter and nine months ended March 31, 2000
respectively. The increase in service costs and decrease in margin resulted
primarily from increased technical field implementation and support staff in the
Pharmacy and Blood Bank divisions to respond to implementation backlog and Year
2000 implementation obligations.
Software development costs include salaries, consulting, documentation, office
and other related expenses incurred in product development along with
amortization of software development costs. Software development costs increased
66.2% or $569,000 for the quarter to $1,428,000 and 48.7% or $1,159,000 to
$3,539,000 for the nine months ended March 31, 2000 compared to $859,000 and
$2,380,000 for the same periods last year. Total expenditures for software
development, including both capitalized and non-capitalized portions and
excluding capitalized software amortization were $2,338,000 and $5,671,000,
respectively, for the three and nine months ended March 31, 2000 compared to
$1,154,000 and $3,197,000 in fiscal 1999. The increased spending reflects the
Company's commitment to development in all divisions, with significant investing
in new products and functionality in the Blood Bank division, including a
Windows client/server product, instrument interfaces, ISBT 128 bar-coding,
LifeTrak(TM) testing module; the Pharmacy divisions WORx product offerings and
to a lesser degree, development to the Operating Room Division's PCMWin, Windows
client/server line of products.
Selling, general and administrative expenses increased 27.3% or $868,000 and
14.5% or $1,284,000 for the quarter and nine months ended March 31, 2000. The
increase primarily related to approximately $732,000 of charges for severance
expense and related professional expenses for changes in management positions,
increased professional fees, and an increase to the reserve for bad debts. The
increase is also reflective of the establishment of a sales team dedicated to
the Operating Room product line, expenses associated with the LifeTrak (TM)
acquisition as well as the inclusion of a full nine months of operations of the
Informedics product center.
Net loss for the quarter was $1,204,000 or basic loss per share of $0.17,
compared to net earnings of $968,000 or diluted earnings per share of $0.14. The
net loss for the nine months ended March 31, 2000 was $410,000 or basic loss per
share of $0.06, compared to a net loss of $1,857,000 (net of a charge of
$4,553,000 for purchased research and development) or basic loss per share of
$0.32 for the same period fiscal year 1999.
Capital Resources and Liquidity
As of March 31, 2000, the Company had cash and cash equivalents of $3,810,000,
an increase of $254,000 from the fiscal year end June 30, 1999. The Company
generated net cash from operations of $4,690,000 and $4,294,000 during the
nine-month periods ended March 31, 2000 and 1999, respectively.
The Company expended $5,206,000 and $1,753,000 for investing activities during
the nine-month period ended March 31, 2000 and 1999, respectively. The principal
uses of cash for investing activities during the current period included
investments in product development and fixed assets, and payment of
9
<PAGE>
$1,075,000 towards the purchase of the LifeTrak (TM) blood center software
package and fixed assets. The balance of $375,000 is payable at June 30, 2000.
During the nine month period ended March 31, 2000, the Company spent $542,000 on
other fixed assets for equipment and software to accommodate increases in
employees and other fixed assets for a Dallas, Texas location, upgrading aged
systems and for use in product development. For the same nine-month period in
1999, fixed asset purchases of $969,000 primarily related to the Pharmacy office
relocation and expansion of facilities. The Company capitalized new product
development of $3,123,000 and $1,437,000 for the periods ended March 31, 2000
and 1999, respectively. The Company plans to expend funds in continuing to
enhance its products and invest in its next generation information systems.
Cash receipts from financing activities for the period ended March 31, 2000
related to the exercise of options and warrants, which aggregated to $953,000.
Cash used in financing activities for the period ended March 31, 2000 include a
repayment of $100,000 of notes to a director and repayment of $50,000 of notes
to a non-affiliate. Cash used in financing activities for the period ended March
31, 1999 related to the repayment of a promissory note issued to IHS as part of
the purchase price for the Pharmakon and JAC operations. During the nine month
period ended March 31, 2000, the Company received $953,000 upon the exercise by
the Chairman of the Board of Directors and others of stock options and warrants.
In the absence of acquisitions of products or companies, management believes
that existing funds and cash generated from operations will be sufficient to
meet operating requirements through at least March 31, 2001. However, there can
be no assurances the Company will continue to operate at current cash levels
long-term, and it may be necessary to seek financial arrangements to continue
the plan of significant investments into the Company's core product lines. The
Company's liquidity is influenced by the Company's ability to perform in a
competitive industry that was impacted by Y2K-readiness concerns and the
deferral of purchases and implementations of systems.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
For a discussion of quantitative and qualitative disclosures about market risks,
please see the Management's Discussion and Analysis of Financial Condition and
Results of Operations section of the Company's Annual Report on Form 10-KSB for
the fiscal year ended June 30, 1999.
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a). Exhibits
Exhibit 11. Schedule of Computation of Net Income (Loss) Per Share
Exhibit 15. Letter of awareness from Richard A. Eisner & Company, LLP dated May
12, 2000 concerning unaudited interim fnancial information.
Exhibit 27. Financial Data Schedule
(b). Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the quarter ended March
31, 2000.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEDIWARE INFORMATION SYSTEMS, INC.
(Registrant)
May 12, 2000 /s/ Michael Montgomery
----------------------
(Date) Michael Montgomery
President, Director and Chief Executive Officer
May 12, 2000 /s/ Kerry Robison
----------------------
(Date) Kerry Robison
Chief Financial and Accounting Officer
11
MEDIWARE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
SCHEDULE OF COMPUTATION OF NET INCOME (LOSS) PER SHARE
(Unaudited)
<TABLE>
<CAPTION>
EXHIBIT 11
Three Months Ended March 31, Nine Months Ended March 31,
------------------------------ ------------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Basic Earnings (Loss) Per Share
Net earnings (loss) $(1,204,000) $ 968,000 $ (410,000) $(1,857,000)
Weighted-average shares:
Outstanding 7,004,000 6,049,000 6,505,000 5,840,000
----------- ----------- ----------- -----------
Basic Earnings (Loss) Per Share $ (0.17) $ 0.16 $ (0.06) $ (0.32)
=========== =========== =========== ===========
Diluted Earnings (Loss) Per Share
Net earnings (loss) $(1,204,000) $ 968,000 $ (410,000) $(1,857,000)
Weighted-average shares:
Outstanding 7,004,000 6,049,000 6,505,000 5,840,000
Options and Warrants - 1,071,000 - -
----------- ----------- ----------- -----------
7,004,000 7,120,000 6,505,000 5,840,000
----------- ----------- ----------- -----------
Diluted Earnings (Loss) Per Share $ (0.17) $ 0.14 $ (0.06) $ (0.32)
=========== =========== =========== ===========
</TABLE>
12
EXHIBIT 15
To the Directors and Shareholders of
Mediware Information Systems, Inc.
We have made a review, in accordance with standards established by the American
Institute of Certified Public Accountants, of the unaudited interim condensed
consolidated financial information of Mediware Information Systems, Inc. and
subsidiaries as of March 31, 2000 and for the three and nine month periods then
ended, as indicated in our report dated May 9, 2000; because we did not perform
an audit, we expressed no opinion on that information.
We are aware that our report, which is included in your Quarterly Report on Form
10-Q for the quarter ended March 31, 2000, is incorporated by reference in the
Registration Statement on Form S-8 (No. 333-07591).
We are also aware that the aforementioned report, pursuant to Rule 436(c) under
the Securities Act of 1933, is not considered a part of the Registration
Statement prepared or certified by an accountant or a report prepared or
certified by an accountant within the meaning of Sections 7 and 11 of the Act.
Richard A. Eisner & Company, LLP
New York, New York
May 12, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MEDIWARE'S
QUARTERLY REPORT TO SHAREHOLDERS FOR THE NINE MONTHS ENDED MARCH 31, 2000 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 3,810
<SECURITIES> 0
<RECEIVABLES> 6,812
<ALLOWANCES> 1,031
<INVENTORY> 189
<CURRENT-ASSETS> 12,137
<PP&E> 2,042
<DEPRECIATION> 2,836
<TOTAL-ASSETS> 28,684
<CURRENT-LIABILITIES> 12,098
<BONDS> 74
0
0
<COMMON> 701
<OTHER-SE> 15,811
<TOTAL-LIABILITY-AND-EQUITY> 28,684
<SALES> 20,347
<TOTAL-REVENUES> 20,347
<CGS> 7,408
<TOTAL-COSTS> 21,068
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 447
<INTEREST-EXPENSE> 42
<INCOME-PRETAX> (683)
<INCOME-TAX> (273)
<INCOME-CONTINUING> (410)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (443)
<EPS-BASIC> (.06)
<EPS-DILUTED> (.06)
</TABLE>